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The Experience Economy

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The Experience Economy

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This work is based upon work supported by the New York Wine and Grape Foundation

The Experience Economy
Delivering world class value through New York Wineries
Presented by Richard “Rick” Lagiewski And Shannon Brock
Sponsored by the New York Wine and Grape Foundation

Why do people buy a Harley Davidson Motorcycle?
Is it about the features of a motorcycle? Is it the feeling of cool, freedom, being a rebel? Which is better? Which is harder for a competitor to copy?

The Progression of Economic Value – in a competitive
environment
Differentiated Relevant to

Stage Experiences

Competitive Position

Deliver Services

Needs of Customers

Make Goods

Undifferentiated

Extract Commodities

Irrelevant to

Market

Pricing

Premium

Modified from Pine and Gilmore – The Experience Economy: Work Is Theater & Every Business a Stage 1999

Economic Distinctions

Modified from Pine and Gilmore – The Experience Economy: Work Is Theater & Every Business a Stage 1999, Pg. 171

The Goal is to ……
• Turn an ordinary event into a memorable experience. i.e. stage an experience.

Experiential Realms
• Customer Participation
– Passive = Customers don’t affect the performance – Active = Customers play a key role in creating their experience



Modified from Pine and Gilmore – The Experience Economy: Work Is Theater & Every Business a Stage 1999

Experiential Realms
• Connection – Environmental Relationship
– Absorption = Viewing NASCAR from the grandstand – Immersion = Watching the race from Pit row

–Modified from Pine and Gilmore – The Experience Economy: Work Is Theater & Every Business a Stage 1999

The key is the sweet spot
• Where all four realms meet.

The Sweet Spot
Absorption

Passive Participation

Entertainment Esthetic

Educational Escapist

Active Participation

Immersion
–Modified from Pine and Gilmore – The Experience Economy: Work Is Theater & Every Business a Stage 1999

How to achieve...